File photo of Wall Street’s entry into the New York Stock Exchange (NYSE)
by Sinéad Carew and Amruta Khandekar
(Archyde.com) – The New York Stock Exchange ended lower on Tuesday, for its first session of 2023, in the wake of declines in Apple and Tesla, as investors worried regarding the timetable envisaged by the Federal Reserve (Fed ) for its rate hikes this year, ahead of the central bank’s “minutes.”
The Dow Jones index fell 0.03%, or 10.88 points, to 33,136.37 points.
The broader S&P-500 fell 15.36 points, or 0.40%, to 3,824.14 points.
The Nasdaq Composite fell for its part by 79.50 points (0.76%) to 10,386.99 points.
Tesla saw its stock tumble 12%, following settling at its lowest since August 2020, following reports of quarterly shipment numbers falling short of Wall Street estimates.
Apple lost 3.7% and fell to its worst closing level since June 2021 following a report from Nikkei Asia highlighted weaker demand and an analyst downgraded its recommendation due to the decrease in production in China, hit by a resurgence of the COVID-19 epidemic.
Among the major S&P-500 sectors, energy fell 3.6% as oil prices fell on weak economic data in China and concerns over the global economic outlook.
This session in the red is in line with a difficult year 2022 on Wall Street, whose three main indices recorded their largest annual decline since the financial crisis of 2008, amid rate hikes operated by the Unprecedented Fed since the 1980s.
“Even though the timing has changed, a lot of the issues for the market have not, primarily the Federal Reserve’s monetary tightening policy which is still concerned regarding inflation,” commented Chris Zaccarelli. , Chief Investment Officer at Independent Advisor Alliance, Charlotte, North Carolina.
Investors will scrutinize the minutes of the Fed’s December monetary policy meeting on Wednesday, following which the U.S. central bank raised rates by 50 basis points and signaled rates might stay high for longer than anticipated.
The weakness in the labor market might encourage the Federal Reserve to apply less monetary tightening, but the data indicates that the labor market is resilient for the time being.
(French version Jean Terzian)
